Owning a home is one of the most secure feelings in the world. When you know you have a house that’s yours, you are less stressed about things like early eviction. For most people, buying a home is not possible without a loan. Taking out a loan to buy a house is also an excellent way to ensure you don’t dip into your savings. Nevertheless, a home loan is a long-term financial commitment. Knowing how much you have to pay every month to own your home. You use a home loan EMI calculatorfor that.
What is a Home Loan EMI Calculator?
A home loan EMI calculator is an online tool that helps you estimate how much your monthly instalment payments will be on the loan you take for your house. The home loan EMI calculator will give you the monthly EMI. You just have to enter details like the loan amount you wish to take, the duration or tenure and the interest rate. That can help you plan your expenses better and see if you can afford the loan. Using ICICI Direct’s home loan EMI calculator, you can quickly compute your monthly payments for a home loan that you take out.
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Why Use a Home Loan EMI Calculator?
There are numerous reasons to use an online home loan EMI calculator. Here are the top 5 reasons to use one before you go in for a home loan:
1. Realistic Forecast
An online home loan EMI calculator is one of the best ways to get a realistic picture of the EMIs that you will have to pay if you take a home loan. All you need to do is input the loan amount, the interest rate, and the loan’s tenure. Not only will you get the amount of EMI that will become due, but it will also give you a breakup of the total loan amount, displaying how much will go towards principal repayments and how much the interest component will be.
2. Simple and Easy to Use
Using a home loan calculator is exceptionally straightforward. All you need to do is enter the required details, and you get the EMI due instantly. It eliminates complex and time-consuming calculations you would have otherwise had to go through.
3. Choosing the Right Tenure
The home loan EMI calculator can be a tremendous assistive tool to help you decide the tenure of the loan you want to take. A longer-term may lower your EMIs, but it increases your loan amount because of the interest you have to pay. A shorter tenure will give you a cheaper deal on your home, but the EMIs will cost more. You can change up the duration on the calculator to estimate what works best for you.
4. Comparing Loans
Just like finding asuitable tenure, you can also use a home loan EMI calculator to choose from different bank loan offers that you may have. A slight change in the interest rate can significantly impact the total repayment and EMIs. Using the calculator, you can see what the EMI will be for the same loan amount but different interest rates and then decide which loan option is the right one for you.
5. Loan Management
Planning your finances is essential, especially when you have multiple loans. If there is ever a situation where you can make a prepayment on your loan, then your EMIs will change. You can use a home loan EMI calculator to estimate how your liability will be altered if you make a prepayment on your loan.
Home loan EMI calculators are designed to be convenient and accurate in their results, provided you enter the right information. Using one can help you plan your EMI payments better and make an informed decision about the loan you are about to take.